2015 (10) TMI 455 - AT - Service Tax

Demand of service tax - Levy of tax amount received as discount and volume discounts - Held that - In the appellants own case, this bench vide final order 2014 (11) TMI 545 - CESTAT MUMBAI , allowed the appeals relying upon a decision in identical set of facts. On perusal of the said order, we find that the issue involved was identical and in respect of the very same respondent assessee. As the issue is decided by the bench in the respondent assessees own case, we do not find any reason to deviate from such a view already taken. - Appeal of the revenue and hold that the impugned order is correct, legal and does not suffer from any infirmity - Decided against Revenue.

Summary

Issues:
Revenue's appeal against dropping of demands raised in show cause notice regarding service tax liability on discounts received by the respondent.

Analysis:
The appeal was filed by the revenue challenging the Order-in-Original dated 06.12.2012, which dropped the demands raised against the respondent regarding service tax liability on discounts received. The adjudicating authority concluded that the amounts accounted as discounts are not liable to service tax. The revenue contended that the discounts were consideration for services rendered. However, the bench noted that in a previous order in the appellant's own case, a similar issue was decided in favor of the respondent. The bench found that the issue was identical and had already been settled in the respondent's favor in a previous case where the revenue was also in appeal. Therefore, the bench upheld the impugned order, stating that it was correct, legal, and free from any infirmity.

This judgment highlights the importance of consistency in decisions and the principle of res judicata. It emphasizes that once an issue has been decided in a particular way in a previous case involving the same parties, there is no reason to deviate from that decision in subsequent cases. The judgment also underscores the significance of following due process of law and considering the specific facts and circumstances of each case while determining tax liabilities.